With all the worries of lawsuits which can come into play just by operating a website (copyrights, trademarks, etc...) has anyone here purchased this type of insurance? One example could be, you purchased articles from a writer that were supposed to be original, but turned out to be plagerized and you get sued for a few hundred grand. I know state farm offers this as many other companies, just wondering if anyone here has any experience with it.
No one will take you straight to court, unless you mess up with the big players. Article authors would normally contact you to either "kindly" ask you to remove the copyrighted content from your site that you don't have a right to publish or seek for a deal with you in regards to those articles. This is a common practice, you first get warned, and given enough time to take action towards solving the issue, no legal action will be taken if you do what you have to do. Legal action? Too costly, and not always the best option when saving money is important to you.
That's exactly what I'd be worried about! With Myspace, Getty Images, and who knows who else ready and able to afford a lawsuit... I've never even heard of this insurance though. I'll have to look into and see what is different from other business insurance.
Ok, I see the issue with the article thing, I was just using that as an example. But you never know who has big pockets. I would not like to chance coming across the wrong person who doesn't want to take the time to just "ask" me to remove it or send a cease & desist. There are people/companies out there who will flat out sue you, no warnings needed. I've dealt with lawsuits offline and if people have the big $$$, they win. If you cannot afford to fight someone (speaking of legit suits), you lose. That's where this insurance comes into play.